Pan American Silver (PAAS) AI Stock Analysis

• Market Cap: $13.05B
• Dividend Yield: 1.52%
• Average Volume (3M): 1.03M
• Price to Earnings (P/E): 29.7
• Beta (1Y): 1.60
• Revenue Growth: 22.18%
• EPS Growth: N/A
• Country: CA
• Employees: 9,000
• Sector: Basic Materials
• Sector Strength: 67
• Industry: Silver
• EPS (TTM): 0.58
• Shares Outstanding: 362,189,500
• 10 Day Avg. Volume: 900,630
• 30 Day Avg. Volume: 1,026,992
• PEG Ratio: 0.15
• Price to Book (P/B): 1.71
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 15.45
• Enterprise Value/Market Cap: 0.62
• Enterprise Value/Revenue: 0.74
• Enterprise Value/Gross Profit: 11.47
• Enterprise Value/Ebitda: 2.17
• 1Y Price Target: $44.40
• Price Target Upside: 21.95% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 72 Outperform
• Price Target: C$37.00 ▲(1.62%Upside)

Pan American Silver's overall stock score is driven mainly by its strong financial performance and positive earnings call, which highlight its growth potential and operational efficiency. The stock's technical indicators and valuation suggest some caution, while recent corporate events provide strategic growth opportunities.

Positive Factors

Earnings

PAAS reported strong results with significant cost beats, generating record quarterly mine operating earnings.

Financial Position

Pan American Silver's substantial cash balance of $863 million enables it to execute key priorities and potentially augment shareholder returns.

Production Performance

Silver and gold sales beat estimates, marking a strong performance in sales volumes.

Strategic Opportunities

PAAS has potential value creation opportunities through optimization, partnerships, and potential disposals.

Negative Factors

Free Cash Flow

Free cash flow misses due to high cash tax payments.

Valuation

PAAS is trading slightly above its historical multiple, leading to a Market Perform rating.

Pan American Silver Business Overview & Revenue Model

Company Description

Pan American Silver Corp., together with its subsidiaries, engages in the exploration, mine development, extraction, processing, refining, and reclamation of silver, gold, zinc, lead, and copper mines in Canada, Mexico, Peru, Argentina, and Bolivia. It holds interests in the La Colorada, Dolores, Huaron, Morococha, Shahuindo, La Arena, Timmins West, Bell Creek, Manantial Espejo, San Vicente, Joaquin, Cap-Oeste Sur Este, and Navidad mines. The company was formerly known as Pan American Minerals Corp. and changed its name to Pan American Silver Corp. in April 1995. Pan American Silver Corp. was incorporated in 1979 and is headquartered in Vancouver, Canada.

How the Company Makes Money

Pan American Silver generates revenue through the sale of precious and base metals extracted from its mining operations. The company's primary revenue stream is the production and sale of silver, although it also earns significant income from gold, zinc, lead, and copper. The company operates several mines across various countries, including Mexico, Peru, Argentina, Bolivia, and Canada, which contribute to its production volumes. Additionally, Pan American Silver may engage in joint ventures and strategic partnerships to enhance its exploration and production capabilities, as well as to manage risks associated with fluctuating commodity prices and geopolitical factors. The company also focuses on cost management and operational efficiency to maximize profitability.

Pan American Silver Financial Statement Overview

Summary

Pan American Silver exhibits strong revenue growth, improved profitability, and robust cash flow generation. The company has effectively managed costs and maintained a strong equity position with low leverage, despite past profitability challenges.

Income Statement

Pan American Silver has shown a strong revenue growth with a TTM (Trailing-Twelve-Months) Total Revenue of approximately $2.99 billion, up from $2.82 billion in the previous year, indicating a positive trend. The Gross Profit Margin improved significantly to 23.72% in TTM from 19.45% in the previous year, suggesting better cost management. Net Profit Margin also increased to 10.42% in TTM compared to 3.95% in the previous year. However, the company experienced negative net income in earlier years, highlighting past profitability challenges. The EBIT Margin improved to 23.67% in TTM, indicating enhanced operational efficiency.

Balance Sheet

The balance sheet shows a solid equity position with Stockholders' Equity at $4.82 billion. The Debt-to-Equity Ratio remains low at 0.17, indicating prudent debt management. The Equity Ratio stands at 66.84%, reflecting a strong equity base compared to total assets. However, fluctuations in total assets and liabilities over the years suggest some instability in financial structure. Overall, the balance sheet reflects a stable financial position with low leverage.

Cash Flow

Pan American Silver's cash flow performance is robust, with a TTM Operating Cash Flow of $837 million and Free Cash Flow of $533 million, reflecting strong cash generation capabilities. The Free Cash Flow Growth Rate is notable at 33%, indicating improved discretionary cash availability. The Operating Cash Flow to Net Income Ratio is 2.69 in TTM, showcasing efficient cash conversion from earnings. The company has managed capital expenditures effectively, supporting growth and liquidity.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
2.99B	2.82B	2.32B	1.49B	1.63B	1.34B
	Gross Profit
709.78M	548.50M	214.60M	48.36M	367.94M	360.18M
	EBIT
707.98M	530.70M	38.10M	-20.52M	320.91M	209.05M
	EBITDA
1.27B	1.05B	476.80M	-7.18M	554.87M	554.20M
	Net Income Common Stockholders
311.56M	111.50M	-103.70M	-340.06M	97.43M	177.88M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
923.00M	887.30M	440.90M	142.34M	335.27M	279.06M
	Total Assets
7.21B	7.20B	7.21B	3.25B	3.52B	3.43B
	Total Debt
804.40M	803.30M	801.60M	226.84M	45.86M	33.56M
	Net Debt
-95.70M	-59.50M	402.00M	119.83M	-237.69M	-133.55M
	Total Liabilities
2.38B	2.49B	2.44B	1.05B	882.58M	828.04M
	Stockholders Equity
4.82B	4.70B	4.76B	2.20B	2.63B	2.60B
Cash Flow		Free Cash Flow
533.10M	400.80M	71.20M	-242.78M	148.63M	283.76M
	Operating Cash Flow
837.06M	724.10M	450.20M	31.91M	392.11M	462.31M
	Investing Cash Flow
-14.42M	-32.60M	397.90M	-255.40M	-186.66M	-83.92M
	Financing Cash Flow
-222.54M	-225.20M	-551.80M	52.97M	-85.91M	-329.59M

Pan American Silver Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 36.41
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:PAAS, the sentiment is Positive. The current price of 36.41 is above the 20-day moving average (MA) of 33.71, above the 50-day MA of 34.66, and above the 200-day MA of 32.17, indicating a bullish trend. The MACD of 0.24 indicates Negative momentum. The RSI at 60.74 is Neutral, neither overbought nor oversold. The STOCH value of 95.77 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:PAAS.

Pan American Silver Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
PAAS	72 Outperform	$13.05B	29.71	6.56%	1.52%	22.18%	―
Sector *	51 Neutral	$2.02B	-1.12	-21.36%	3.65%	2.87%	-30.54%
AG		$3.42B	―	-4.57%	0.27%	―	―
FSM		$2.05B	12.91	12.07%	―	―	―
MAG		$2.04B	22.27	16.27%	0.98%	―	―
AYA	61 Neutral	C$1.72B	152.08	-4.59%	―	88.60%	-684.16%
DSVSF		$2.08B	―	-24.80%	―	―	―

Pan American Silver Corporate Events

Pan American Silver Releases 2024 Sustainability Report Highlighting ESG Achievements

Pan American Silver Corp. has released its 2024 Sustainability Report, highlighting significant achievements in environmental, social, and governance (ESG) performance. The company has reduced water usage, surpassed greenhouse gas emissions reduction targets, and contributed significantly to local communities. It has also made strides in gender diversity and supplier evaluation. The report aligns with global sustainability standards and marks the company’s 15th annual sustainability report. Pan American’s ESG efforts have been recognized by S&P Global, ranking it in the top 7% of the Metals & Mining industry, and by MSCI Inc., which upgraded its ESG score.

The most recent analyst rating on (TSE:PAAS) stock is a Buy with a C$25.00 price target. To see the full list of analyst forecasts on Pan American Silver stock, see the TSE:PAAS Stock Forecast page.

Pan American Silver to Acquire MAG Silver, Boosting Silver Portfolio

Pan American Silver Corp. has announced a definitive agreement to acquire MAG Silver Corp., enhancing its strategic interest in the Juanicipio Silver Mine. This acquisition, valued at approximately $2.1 billion, will significantly strengthen Pan American’s silver portfolio by adding a high-grade, low-cost silver mine. MAG shareholders will receive a premium on their shares and gain exposure to Pan American’s diversified assets, including future growth opportunities. The transaction is expected to solidify Pan American’s position as a leading silver producer in the Americas, offering substantial exploration potential and financial strength.

Pan American Silver Reports Favorable Shareholder Meeting Outcomes

Pan American Silver Corp. announced the results of its annual general and special meeting, where shareholders voted in favor of all proposed matters. These included setting the number of directors at nine, electing management’s nominees as directors, appointing Deloitte LLP as auditors, and approving the company’s approach to executive compensation. The meeting saw a high level of shareholder participation, with 68.52% of the company’s issued and outstanding shares represented. This outcome reflects strong shareholder support and is expected to positively impact the company’s governance and operational strategies.

Pan American Silver Reports Strong Q1 2025 Results with Record Earnings

Pan American Silver Corp. reported strong unaudited financial results for the first quarter of 2025, with basic earnings of $0.47 per share. The company achieved record mine operating earnings of $250.8 million and free cash flow of $112.6 million, driven by lower costs and higher metal prices. The company remains on track to meet its 2025 guidance, with expectations of increased production in the coming quarters. Key project updates include ongoing exploration and development efforts at the La Colorada mine and Skarn, as well as a focus on shareholder value through dividends and share repurchases.